EDITORS: Please do not use
"Pacific Gas and Electric" or "PG&E" when
referring to PG&E Corporation or its National Energy Group.
The PG&E National Energy Group is not the same company as Pacific
Gas and Electric Company, the utility, and is not regulated by the
California Public Utilities Commission. Customers of Pacific Gas
and Electric Company do not have to buy products or services from
the National Energy Group in order to continue to receive quality
regulated services from Pacific Gas and Electric Company.

PG&E CORP.
NAMES HERMAN GENERAL COUNSEL OF NATIONAL ENERGY GROUP

(Bethesda, MD)- PG&E Corporation
(NYSE:PCG) today announced the appointment of Stephen A. Herman
as Senior Vice President and General Counsel of PG&E National Energy
Group. Herman will report to Thomas G. Boren, Chief Executive Officer
of PG&E National Energy Group. The Company recently announced the
restructuring of its National Energy Group into a consolidated business
unit that includes PG&E Energy Trading, PG&E Gas Transmission and
PG&E Generating. The PG&E National Energy Group will be headquartered
in Bethesda, Maryland.

Herman joins PG&E National
Energy Group from the international law firm of Latham & Watkins,
where he was a partner in the firm's energy practice. Prior to that,
he was with U.S. Generating Company as Senior Vice President and
General Counsel. Before joining U.S. Generating Company, he was
a partner with the Washington, D.C. office of Kirkland images/news/news
has more than 20 years experience in the energy industry, including
competitive electric power mergers and acquisitions, project development
and finance, and natural gas mattersimages/news/newsimages/news/newsan
L.L.B. from the University of Virginia Law School and a B.S. from
the Wharton School of Finance and Commerce at the University of
Pennsylvania.

In announcing the appointment,
Boren said, "Steve Herman brings a wealth of experience to PG&E
National Energy Group and will be a strong contributor to helping
meet our growth objectives and to delivering superior shareholder
return."

PG&E National Energy Group
currently owns over 6,500 megawatts of generation capacity in operation
as well as 1,229 miles of natural gas pipeline. The trading arm
reported 1999 volumes of 224.7 million megawatt-hours of power and
8.4 billion cubic feet per day of natural gas, making it one of
the nation's largest energy marketers.

PG&E Corporation, with 1999
operating revenues of almost $21 billion and operations in 21 states,
markets energy services and products throughout North America through
its National Energy Group. PG&E Corporation's businesses also include
Pacific Gas and Electric Company, the Northern and Central California
utility that deliver natural gas and electricity to one in every
20 Americans.